PASSHE board takes step toward system redesign
The Pennsylvania State System of Higher Education board of governors advanced plans Thursday to include a line item in its budget for a system redesign.
On the second day of its meetings at Kutztown University, the board decided to ask the General Assembly for $487 million overall for the 2020-21 academic year,
Included in the request was $100 million over five years for a system redesign, which would be used to create enhanced online learning opportunities; transform information technology; further facilities management; and implement a new consortium of shared services.
PASSHE spokesman Dave Pidgeon said consolidating these four features at a systemwide level is key to the system's redesign effort, which is meant to save money long-term.
The board has discussed and analyzed the redesign over the past two years.
At Wednesday's meeting, the board proposed a five-year total of $100 million for appropriations sought specifically for the redesign. Board Chairwoman Cindy Shapira favored a figure near $300 million.
The board then tabled the item for Thursday, but at Thursday's meeting a motion was made to return the proposal to $100 million over five years. Shapira then spoke in favor of the originally requested figure.
“We've made substantial progress in many areas such as transparency and affordability that are central to the success of public higher education in Pennsylvania,” said State System Chancellor Dan Greenstein, thanking the board for its leadership and confidence.“Current and future students are counting on us to make quality public higher education affordable and accessible, and today, we've taken extraordinary steps toward living up to that responsibility,” Greenstein said.Pidgeon said the requested funding for the redesign will allow the system to take its first steps toward making its goals a reality.“Our projections are a possibility of (between) $51 and $82 million of cost savings upon full implementation,” Pidgeon said. “That doesn't even include the potential revenue generating areas such as online learning.”The board Thursday also approved a new financial sustainability policy for all 14 universities.Pidgeon said the new policy is meant to improve transparency and accountability in financial management.The new policy standardizes terminology and metrics used to determine a university's financial well-being with the goal of improving financial stability through collaboration across the system.In a system news release Thursday, Shapira said focusing on transparency and accountability will help grow the system's relationship with the state government.“We are reimagining public higher education in Pennsylvania, and the steps taken by the board today will provide significant benefits for our students,” Shapira said.
